Michael Burry Maintains Short Position on Palantir, Citing Severe Overvaluation

Michael Burry, the investor renowned for predicting the 2008 subprime mortgage crisis, has extended his bet against Palantir Technologies (PLTR). In a recent update, Burry characterized the software firm as "wildly overvalued," maintaining a position that anticipates a significant price correction. Palantir has seen a meteoric rise during the current artificial intelligence boom, with its share price increasing by 1,400%. The company's growth has been largely driven by its Artificial Intelligence Platform (AIP), which enables government and commercial clients to integrate large language models (LLMs) with their proprietary data to optimize workflows and battlefield anticipation. Burry's valuation suggests a fundamental value of less than $50 per share. With the stock closing at $128 on April 10, this represents a potential downside of approximately 60%. The investor initiated this bearish stance using put options in the fall of the previous year and has confirmed he continues to hold these positions. Despite Burry's warning, Palantir has reported strong growth in revenue and contract values across its commercial and government sectors. The company has also achieved profitability, providing a counter-argument to the bearish thesis. Traders are now weighing Burry's track record for spotting bubbles against Palantir's current operational momentum.